Refer to the Table Shown A)$100
B)$150

question 125

Multiple Choice

Refer to the table shown. The average fixed cost of producing eight bicycles is: $$\begin{array} { | c | c | } \hline \begin{array} { c } \text { Output } \\\text { (bicycles per week) }\end{array} & \text { Tatal cast (dallars) } \\\hline 1 & 100 \\\hline 2 & 200 \\\hline 3 & 310 \\\hline 4 & 440 \\\hline 5 & 580 \\\hline 6 & 730 \\\hline 7 & 900 \\\hline 8 & 1,200 \\\hline\end{array}$$

• A)$100.
• B)$150.
• C)less or equal to $12.50.
• D)greater than $20.

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Definitions:

Pigovian Taxes

Taxes imposed on activities that generate negative externalities, aiming to correct market inefficiencies and reduce unwanted behaviors.

Regulatory Policies

Rules or guidelines issued by governmental agencies to control or direct economic or social activities.

Negative Externalities

Economic activities that impose a cost on third parties who are not directly involved in the activity, such as pollution.

Noise-Control Regulations

Laws or policies implemented to limit the amount of noise pollution in an environment, aiming to protect public health and well-being.